Failing to win a license were Cash2coin and Southeast Asia Digital Exchange (SEADEX). The regulator said the two firms had not met the required standards – for example, custody systems and know-your-customer (KYC) processes were “inconsistent” and the effectiveness of their cybersecurity systems could not be verified.

As a result, Cash2coin and SEADEX will have to cease business operations by Jan. 14, and have been told to return clients’ assets under their custody, the SEC said. The firms can, however, reapply for the license provided the approval criteria are ultimately met.

Meanwhile, the SEC is still considering another application from a firm called Coin Asset. The company has made some executive changes which the SEC considers “material information” for license consideration. Until a decision is made, Coin Asset is permitted to carry out business operations.

Thailand first announced its crypto licensing rules in July of last year, with 20 crypto firms applying for the license within a month. The rules require projects that intend to offer crypto services to gain approval from the SEC before starting operations.